MAR 3023 Lecture 2 18 Branding Brand Management and Packaging Netflix poor brand management Quickster is owned by Netflix but it mails DVDs to the buyer s house Netflix is the online streaming part of it Bad news for customers need two separate accounts to manage two different accounts two different websites not convenient Netflix realized its customer outrage so they banned Quickster Basic Brand Terminology Brand Building Brand Equity Packaging Labeling What is a brand A name term sign symbol or design or a combo of these Intended to IDENTIFY the goods and services of one seller s To differentiate them from those of competitors A promise that the firm makes to its customers Basic Brand Terminology Brand name verbal label you attach ex Coke Brand mark nonverbal label symbol ex Nike check McDonald s golden arches Trade name Commercial legal name The Coka Cola Company Trade Character Personification of the brand Albert the Alligator Planter s Peanut Logo Symbol Words Trademark legal protection of all the above names or logos can get it renewed and must prove it s being used Brand Building Brand Positioning Brand Positioning options Attributes features your brand has problem vulnerable consumers care more about benefits ex disposable diapers Benefits What consumers care about ex diapers are good for your baby s skin Beliefs and Values show how product strengthens relationships connecting deeper to personal values Purpose of a brand name Identifier Communicator Different types of brand names Descriptive talks about the products characteristics Lean Cuisine Web MD Connotative suggests a certain meaning Jaguar car will be fast Energizer Batteries Surnames after last name of founder Ford Dell Arbitrary no inherent product related meaning name says nothing about the product Apple Amazon Altered Constructed made up word might be based off a Greek or Latin root Accura Oreo A good name should do all of these things Criteria for a good name Suggests product s benefits qualities image Simple pronounceable memorable Jet Blue Distinctive hard to imitate or forget or confuse Lexus Zappos Amazon Extendable can allow you to move into other categories Protectable can get a trademark for it don t want it to be infringing on other brands have to protect it from misleading claims Translatable should work in other languages Exxon Tradeoffs in naming Familiarity vs memorability want people to remember it but not stand out too much Versatility vs meaning Simplicity communicability vs protection Brand Name Selection Family Branding Multiproduct branding all of Nike s clothing is called Nike Multiple branding Multibranding Proctor and Gamble owns a bunch of different products all under the name owner Brand Sponsorship National Brands sold from one manufacturer Kellogs Pop Tarts vs Private label Brand Publix brand sold by one retailer under its brand name Co branding Two companies brand something together Nike iPod Licensing Allow another company to use your name or label for their product ex Disney shirts at Walmart Lecture 2 18 Part 2 Brand Development Line extension w in existing category selling coke then extending to Coke Zero A new color size flavor etc Vertically differentiated extensions easy ordered in terms of their benefits Can put in order from best to worst ex gold bronze silver membership Horizontally differentiated extensions not easily ordered in terms of their benefits Not an order of benefits Brand extensions into a new category Tide opening up Tide laundry rooms Under Armor making dresses When does extension work best FIT Make it work Transferability of skills and assets Complementary of use Functional attributes Intangible attributes The added value your brand provides to a product User types Brand Equity Components Awareness Associations Loyalty Perceived quality Image that comes to mind when someone sees your brand Measuring Brand Equity taste tests Blind tests how much is valued by the brand name itself Young and Rubicon Brand Asset Valuator Brand Strength Differentiation and relevance how much does it stand out compared to other products does it meet your needs is it useful to consumers Brand Stature Knowledge and esteem More about QUALITY do people consider it one of the best how much do you know about it Can be used across brands or across nations for one brand Most Valuable Brands 2013 1 Apple 2 Google 3 Coca Cola 4 IBM 5 Microsoft 6 GE 7 McDonalds 8 Samsung 9 Intel 10 Toyota Other Branding Issues Updating Changing brands Brawny man is cleanly shaven now used to have a beard Consumer brand relationships Want people to see it and feel like they can connect to the image and form a relationship Brand communities Want brand users to stick together ex Gator Nation Packaging and Labeling Packaging functions Contains the product Facilitate use Coke box with handle and tear off to easly grab a soda Mini Ketchup packets Communicate what kind of user should be using the product what the product does Fit channel needs Pringles Chips come in container where your chips wont be crushed Labeling Packaging problems Hard to open Environmental problems Bad re designs Packaging should be data driven Product should be easy for people to access understand and use